Bernstein Lowers Burlington Stores (BURL) Price Target, Maintains Outperform Rating

On May 31, Bernstein reduced its price target on Burlington Stores, Inc. (NYSE:BURL) to $365 from $380 while maintaining an Outperform rating, pointing to short-term demand softness but reinforcing confidence in the company’s longer-term growth trajectory.

Analyst Aneesha Sherman noted that Burlington remains in the midst of a multi-year strategic transformation aimed at boosting profitability and operational efficiency. While recent demand from off-price department store retailers has shown some weakness, the firm believes the retailer is still on track to achieve approximately 25% earnings per share growth through 2028.

Women in fashionable clothing walking together down a busy city street.

Sherman views the recent dip in shares as a potential buying opportunity for investors with a medium-term horizon. The report emphasizes Burlington Stores, Inc. (NYSE:BURL)’s improving fundamentals, including enhanced inventory discipline, tighter expense controls, and continued progress on new store openings.

Bernstein’s updated target reflects current market conditions but does not alter its broader outlook. The analyst highlighted management’s disciplined approach to value retailing and its ability to navigate shifting consumer behavior as reasons for optimism.

With momentum expected to build as macroeconomic headwinds ease, Sherman sees room for Burlington to outperform peers. The firm remains bullish on the company’s ability to capitalize on industry tailwinds in the off-price retail space, particularly as it refines its merchandising strategy and expands its footprint across under-penetrated regions.

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